
“We are in a situation where we want to see some of the biggest corporations in Australia increasing the share that they pay to help operate the city that they live in,” said ACT Greens leader Shane Rattenbury, alongside deputy leader Jo Clay. Photo: Nicholas Ward.
The ACT Greens have announced a proposal for a 4 per cent tax increase on businesses with a national payroll of more than $200 million, as the party accuses Labor of looking to cut essential services in the city.
Party leader Shane Rattenbury, alongside deputy Jo Clay, announced the proposal on Friday at a press conference outside the Legislative Assembly.
“The Greens are launching a measured but ambitious plan to ensure there are no cuts to essential services in this year’s budget,” Mr Rattenbury said.
“We are in a situation where we want to see some of the biggest corporations in Australia increasing the share that they pay to help operate the city that they live in.”
The Greens’ proposal would raise $106 million and affect less than 1 per cent of businesses, according to the party’s estimates.
Mr Rattenbury said the Greens had aired this proposal before the budget as the party was concerned that Labor was foreshadowing cuts.
“We know the ACT budget is under pressure, and the Labor Government has been talking about the need for tough decisions, for difficult decisions, but we are really concerned to avoid a situation where Canberra’s most needy are missing out on essential services just to balance the books,” he said.
Australia Institute senior economist Matt Grudnoff said his organisation welcomed the proposal.
“Taxing big business is an important way to fund essential spending on hospitals, schools, aged care, and public housing,” Mr Grudnoff said.
”The ACT faces many challenges, and this additional revenue will make a real difference in the lives of the people of the ACT.”
However, Mr Grudnoff said the ACT had a unique challenge when it came to payroll tax, which needed wider action to address.
“The Federal Government doesn’t have to pay payroll tax … for most states and territories … the federal workforce makes up less than 2 per cent of their workforce … in the ACT, a quarter of the workforce [is federal],” he said.
“The ACT Government still has to provide health services and education services, and aged-care services, and all the other kinds of services to these federal public servants. Effectively, the Federal Government is not paying its fair share.”

“While big business may threaten to leave, the reality is these are empty threats. The ACT has many valuable customers that these large businesses want to sell to,” said the Australia Institute’s Matt Grudnoff. Photo: Supplied.
The tax rate on large companies is already set to increase on 1 July with a 0.5 per cent rise for businesses with a payroll between $50 and $100 million and a 1 per cent jump on those exceeding $100 million.
The Greens’ proposal would apply to only a small number of companies, such as the supermarket and airline duopolies, Wesfarmers, and major banks. Mr Grudnoff said there was little downside to such taxes.
“While big business may threaten to leave, the reality is these are empty threats. The ACT has many valuable customers that these large businesses want to sell to,” he said.
The Territory Government has come under criticism in recent years for growing debt in the capital. But Greens deputy leader Jo Clay said that even if the budget needed balancing, there was more than one option.
“It’s essential that we make sure these big corporations pay their fair share,” she said.
”We know a lot of people are struggling with the basics of putting food on the table. We cannot make short-term decisions to cut services and cut environmental spending when we have other options, and the best option is to make sure that these big corporations are paying their fair share of tax.”
To pass a budget, Labor will need support from other parties or independents. Mr Rattenbury said they would not be a rubber stamp for a Labor budget.
“We were very clear last October, November, that in the negotiations with the Labor Party, we were not able to strike an agreement that prioritises some of these key issues,” he said.
“Prioritise environmental funding, better funding for public and community housing, for key community services. We were not able to be part of that government, but nonetheless, we do hold the balance of power in this Assembly.”